Quote:
Originally Posted by WarChild
Paul, I live in Bermuda one of the reinsurance capitals of the world. I have many friends that work directly in the business in the year 2012. Traders, auditors, partners and the like. I'm going to go ahead and say that trumps you selling office furniture to somebody who sold reinsurance 30 years ago. 
If I'm ever interested in what dirt poor third world women have to do to survive, I'll gladly bow to your knowledge. |
Exposed as a person who knows little. Bermuda isn't the reinsurance capital of the world.
http://en.wikipedia.org/wiki/Reinsurance#Markets
If you read that you might get a better picture of what you're babbling about. My customers were connected to Lloyds of London. "
In addition, syndicates at Lloyd's of London wrote £6.3 billion of reinsurance premium in 2008."
Reinsurance works fine up to a certain level, like a $50,000,000. Disasters can cost $billions. Asking companies who are a few billions at the biggest to take risks of many billions is going to be costly. You simply move the cost to a company in Germany, London, Bermuda
, Switzerland, France and the USA.
The USA couldn't rely on private enterprise to rescue the banks. The costs were too high. Private Enterprise had not "insured" itself against the risk of it all going tits up. So the choice was to face the risk of a depression to the level of the 30s, with anyone with money at risk to lose it and everything else. Or for the Government to step in.
And that's what Ron Paul is advocating, that insurance companies with reinsurance companies taking the burden of covering the costs. This will include providing immediate relief, rebuilding roads, schools, hospitals, fire and police stations and every other part of the infrastructure that has been hit. Because before you pay out to rebuild a house, you have to make sure of a lot more things being in place.
So not only will your cost of insurance climb, the savings in taxes won't be so great. As all public amenities will have to have this extra cover as well.
Ron Paul I assume has done all the calculations of what that would cost. It's silly to think he's preaching to the mob who think this is going to save them money.
Of course anyone who is retired, on a low wage, invalid, out of work or doesn't have the complete covers for everything. Can go whistle and live in a field. Because the insurance companies won't pay for them.